Webinar: Explaining Mississippi's New Mechanics Lien Law

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Accompanying Webinar: http://hub.zlien.com/mississippi-lien-law-updates-webinar

In 2014, Mississippi's mechanics lien laws went through the ringer. First, the remedy available to subcontractors and suppliers was declared completely unconstitutional. Second, the legislature acted quickly to pass sweeping changes to the entire lien schema.

Now, subcontractors, suppliers, and other project participants have more lien rights than ever in the state.

This presentation goes through the substantial legal changes to the Mississippi Mechanics Lien Laws...giving those doing construction business in the state the knowledge they need to protect their lien rights, and use them.

Published in: Law, Business, Sports
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Webinar: Explaining Mississippi's New Mechanics Lien Law

  1. 1. Mississippi Lien Law Changes
  2. 2. Every Wednesday
 1pm CST*
 
 Signup At:
 http://zlien.us/zwebs Construction Financial Knowledge * this is a special edition
  3. 3. ‣ Very Restrictive ‣ Not Protective ‣ Unconstitutional ‣ A Mess How The Law Used To Be:
  4. 4. Mississippi Lien Law used to be very restrictive in that only prime contractors had lien rights - and subs/suppliers were forced to make do with a stop notice remedy But then, Fifth Circuit deemed Mississippi’s Stop Notice law facially unconstitutional for depriving general contractors of their property without due process of law.
  5. 5. BUT STOP!
  6. 6. The passage of Senate Bill 2622 - and its signature into law completely changed the entire scheme of lien law in Mississippi IT’S SO MUCH BETTER, NOW
  7. 7. Lien Protection is now expanded to include many more parties . . . subs, sub- subs, suppliers, etc.
  8. 8. You get a lien, and You get a lien, and You get a lien. ! Everybody’s getting liens!
  9. 9. The wholesale change of Mississippi lien law resulted in many more changes than just providing expanded coverage, though. ! We’ll take a quick look at some of them, now.
  10. 10. 1.More Parties Are Protected
  11. 11. 1. More Parties Are Protected (a) All contractors, all subcontractors and all materialmen furnishing material for the improvement of real estate; ! (b) All registered architects or professional engineers furnishing plans, drawings, designs, or other architectural or engineering services on or with respect to any real estate; ! (c) All registered land surveyors performing or furnishing services on or with respect to any real estate.
  12. 12. The new statute specifically defines “materialmen” as a party furnishing materials to a prime contractor or first-tier subcontractor. This means that material suppliers to a sub-sub or below is not protected by the new Mississippi scheme, & “subcontractor” is similarly limited by definition. (For the purposes of Mississippi lien protection, a subcontractor is defined as only a first or second-tier sub. Third tier subcontractors are excluded from lien protection.) NOTES: If a party is required to be licensed - a valid license is required in order to file a valid mechanics lien
  13. 13. 2.New Deadlines Apply
  14. 14. 2. New Deadlines Apply Lien Deadline: All Lien Claimants calculate the time period in which their lien must be filed in the same way: 90 Days from Last Furnishing Labor or Materials. Foreclosure Deadline: All Lien Claimants calculate the date by which they must initiate enforcement of their lien in the same way: 180 Days from the date the lien was filed.
  15. 15. 3.New Notice Requirements Apply
  16. 16. 3. New Notice Requirements Apply There are 3 Basic Potential Notice Requirements: 1. Owner’s (or G.C.’s) Request for Subs/Suppliers - triggers a necessary response to provide that information. 2. Any person having a right to a lien pursuant to Section 85-7-403 who does not have privity of contract with the contractor, or, if there is no contractor, with the owner, and is providing labor, services or materials for the improvement of property, within thirty (30) days following the first delivery of labor, services or materials to the property, the person shall give a written notice to the contractor, or, if there is no contractor, to the owner… [Prelim] 3. All parties who did not contract directly with the property owner on a single-family residential project must provide a “pre-lien written notice” (notice of intent to lien) to the property owner at least 10 days prior to filing a lien on the property. [Notice of Intent]
  17. 17. failure to comply with any notice requirement, when necessary, is FATAL to a future lien claim
  18. 18. How Should Notice be Given? This notice is allowed to be delivered by multiple methods – registered or certified mail, statutory overnight delivery, or, “e-mail with a confirmed receipt”.* Preliminary Notice * It will be interesting to see how courts interpret “e-mail with confirmed receipt”
  19. 19. How Should Notice be Given? May be given “by any reliable means of delivery”* Residential Notice of Intent to Lien * It will also be interesting to see how courts interpret “reliable means of delivery” if notice is never actually delivered
  20. 20. 4.New Lien Waiver Scheme
  21. 21. * Mississippi now has statutory Lien Waiver forms which set forth the required language for a valid lien waiver. Lien Waivers * Ambiguity in whether lien waivers were allowed prior to work has been made clear - Mississippi does not allow contractors and suppliers to waive their lien rights before any work on the project begins. * Mississippi Lien Waivers work like conditional waivers that turn into unconditional waivers after the waiving party is paid, or after a set number of days.
  22. 22. A party who gives a lien waiver, and remains unpaid may,within 60 days, file an affidavit of nonpayment, and send a copy of same to the owner, to suspend the waiver and release until payment is made. Lien Waivers
  23. 23. I’m hopeful that this presentation made a little more sense of the recent changes to Mississippi’s lien law - and that you’ll come back and join us for another Webinar to gain more Construction Credit Knowledge Mississippi Changed Everything
  24. 24. FREE Mississippi Lien Law Resources ACCESS FREE RESOURCE
  25. 25. GUIDE DOWNLOAD EBOOK FREE How To File A Mississippi Mechanics Lien

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